I need help!!! The questions below have been resolved numerically. I need help explaining the answers in words - how each question answered below would affect a company's financial decisions.

1. Stock Valuation: A stock has an initial price of $100 per share, paid a dividend of $2.00 per share during the year, and had an ending share price of $125. Compute the percentage total return, capital gains yield, and dividend yield.

the percentage total return = [$(125 - 100) + $2] / $100 = 27%

Dividend Yield = Dividend Paid / Initial Price = 2/ 100 = 2% or 0.02

Capital Gain Yield = Final Price - Initial Price / Initial Price = 125 -100 / 100 = 0.25 or 25%

2. Total Return: You bought a share of 4% preferred stock for $100 last year. The market price for your stock is now $120. What was your total return for last year?

R = Final price - Intial Price + Additions / Intial Price

R= (120-100+4)/100 = 0.24 or 24%

3. CAPM: A stock has a beta of 1.20, the expected market rate of return is 12%, and a risk-free rate of 5 percent. What is the expected rate of return of the stock?

Rate of return = Risk free rate + beta *(Expected market return - Risk free rate)

= 5% + 1.20 * (12% -5%) = 13.4%

WACC: The Corporation has a targeted capital structure of 80% common stock and 20% debt. The cost of equity is 12% and the cost of debt is 7%. The tax rate is 30%. What is the company's weighted average cost of capital (WACC)?

WACC = Weight of equity in capital structure * Cost of equity + Weight of debt * Cost of debt *(1-tax)

WACC = 0.80*0.12+0.20*0.07*(1-0.30) = 0.077 OR 7.7%

Flotation Costs: Medina Corp. has a debt-equity ratio of .75. The company is considering a new plant that will cost $125 million to build. When the company issues new equity, it incurs a flotation cost of 10%. The flotation cost on new debt is 4%. What is the initial cost of the plant if the company raises all equity externally?

Flotation cost = cost of plant = (1-flotation cost rate)*Amount raised

Flotation Cost= 125 million= (1-.10) x amount raised

=125/0.90 = 138.88 million